DURING his State of the Nation Address, Namibian President Nangolo Mbumba revealed the country’s optimistic outlook for potential economic growth driven by increased oil exploration activities and the advancement of green hydrogen projects. With expectations of firmer estimates of recoverable oil reserves, Namibia is poised to leverage its natural resources for economic prosperity.
President Mbumba underscored the significance of this development, highlighting the potential for oil, gas, and green hydrogen initiatives to stimulate economic growth, generate employment opportunities, and foster prosperity. ‘We are prepared for this opportunity through a robust local content regime, a ready sovereign wealth fund, and various other measures to maximize the impact and benefits of oil,’ Mbumba stated before lawmakers in Windhoek, the national capital.
The surge in exploration activities, particularly in the oil-rich Walvis and Orange basins, has positioned Namibia as a promising player in the global oil market. International oil companies have intensified their efforts, signalling growing confidence in Namibia’s potential as an oil-producing nation.
In addition to oil exploration, Namibia is exploring the feasibility of using locally produced green hydrogen to manufacture various goods, including ammonia, fertiliser, hydrogen, iron, and cement in an environmentally sustainable manner. Mbumba emphasized the competitive advantage this could provide in capturing new markets.
Namibia is set to witness the initial outputs of pilot projects for green hydrogen, green ammonia, and green iron production this year. With the green ammonia market projected to achieve significant growth by 2030, Namibia aims to position itself as a key player in the renewable energy sector.
As Namibia awaits the anticipated announcements of firmer estimates of recoverable oil reserves, the country remains committed to harnessing its natural resources for sustainable economic development and enhancing its global competitiveness in emerging industries.